Hidden Valley Shopping Center - El Paso, TX

HIDDEN VALLEY SHOPPING CENTER EL PASO, TX

PRI C I N G & FI N A NC IA L ANALYS IS

HI DDEN VALLE Y SH O P P ING C E NT E R - E L PASO, T X

Hidden Valley Shopping Center 7100 Alameda El Paso, TX 79915

Offering Summary Price Cap Rate Net Operating Income Price PSF Occupancy Year Built

$6,620,000 7.18% $475,128 $109.72 92.2% 1966

Gross Leasable Area

60,289 SF

Acres

4.26 Acres

F I N A N C I A L A N A LY S I S

2

PRI C I N G & FI N A NC IA L ANALYS IS

Income & Expenses Base Rent - Occupied Space

92%

Base Rent - Lease Up Space

8%

GROSS POTENTAL RENT

HI DDEN VALLE Y SH O P P ING C E NT E R - E L PASO, T X

Current

PSF

$510,690

$8.47

-

-

$510,690

$8.47

Exp. Reimb.

Expenses

Current

PSF

Real Estate Taxes

$88,439

$1.47

Insurance

$22,873

$0.38

CAM

$46,679

$0.87

$19,864

$0.33

$5,658

$0.09

$183,513

$3.04

Real Estate Taxes

$81,626

$1.35

Mgmt. Fee (% of GPI)

Insurance

$19,550

$0.32

Non-Reimbursable Expenses*

CAM

$33,228

$0.55

Mgmt. Fee

$13,547

$0.22

Total Exp. Reimb.

$147,951

$2.45

GROSS POTENTIAL INCOME

$658,641

$10.92

EFFECTIVE GROSS INCOME

$658,641

$10.92

Real Estate Taxes

($88,439)

($1.47)

Insurance

($22,873)

($0.38)

CAM

($46,679)

($0.77)

($19,864)

($0.33)

($5,658)

($0.09)

($183,513)

($3.04)

$475,128

$7.88

Total Expenses

3.00%

*Family Thrift is paid a monthly 3.3% commission fee paid upon monthly Base Rent Received. $471.47 per month until 2025; $505.15 from 2025 2029.

Expenses

Mgmt. Fee (% of GPI)

3.00%

Non-Reimbursable Expenses* Total Expenses

Net Operating Income

For Financing Options, Please Contact: Greg Holley | Managing Partner High St Capital (O) 469-998-7200 | (C) 714.514.2990 gholley@highstcapital.com

F I N A N C I A L A N A LY S I S

3

RE NT RO L L

HI DDEN VALLE Y SH O P P ING C E NT E R - E L PASO, T X

Suite

Tenant

Sq Ft

% of SQ FT

Start

End

Annual Rent

PSF

Escalation Date

Escalation Amount

Options

Lease Type

7100-B

A-Max Insurance

1200

1.99%

1/12/2018

1/31/2023

$23,400

$19.50

-

-

-

NNN

7142-44

Abrazos Pediatric

3226

5.35%

8/20/2019

8/31/2024

$24,000

$7.44

-

-

-

NNN

7114

Family Dollar

10128

16.80%

4/26/1995

12/31/2025

$76,860

$7.59

1/1/2026

$8.35

2x5

See Below*

7108, 7110

Family Thrift Center

24441

40.54%

12/1/1987

1/31/2029

$171,444

$7.01

1/1/2025

$7.52

2x5

NNN

7140

Fred Loya Insurance

1437

2.38%

9/1/2003

8/31/2023

$21,192

$14.75

-

-

-

NNN

7130

Hair Showcase

914

1.52%

3/1/1987

2/28/2024

$9,600

$10.50

-

-

-

NNN

7122

Model Bakery

3026

5.02%

10/1/2010

9/30/2022

$25,200

$8.33

-

-

-

NNN

7110-B

NEXTAR TX

2327

3.86%

1/13/2017

01/31/2025

$29,124

$12.52

-

-

-

NNN

7134

Printing By The Minute

2601

4.31%

11/1/2020

10/31/2023

$15,000

$5.77

-

-

-

Gross

7138

The Door Christian Center

1242

2.06%

5/23/2021

5/31/2024

$12,600

$10.14

5/23/2022

$10.39

-

NNN

7100-A

Little Caesars

1800

2.99%

7/17/2009

7/31/2029

$40,920

$22.73

8/1/2024

$25.01

1x5

NNN (Excl MGMT)

7120

Max Vapor

1313

2.18%

12/1/2020

11/30/2025

$14,400

$10.97

12/1/2022

$11.42

-

NNN

7146

Subway

1990

3.30%

11/26/2005

11/30/2025

$37,800

$18.99

-

-

-

NNN

Kiosk

Watermill Express

1

0.00%

9/16/2021

9/16/2026

$9,000

-

-

-

-

7110-C

Vacant

3693

6.13%

-

-

-

-

-

-

-

-

7136

Vacant

950

1.58%

-

-

-

-

-

-

-

-

55,646

92.3%

$510,540

$8.47

4,643

7.70%

60,289

100%

Occupied Vacant Total

*Family Dollar is only responsible for paying increases of Base taxes ($37,599) and Base Insurance ($4,604).

F I N A N C I A L A N A LY S I S

4

TE NA NT INF ORMAT I ON

HI DDEN VALLE Y SH O P P ING C E NT E R - E L PASO, T X

DBA

Family Dollar

Locations

8,000+

Public/Private

Public

Line of Business

Family Dollar is a variety store chain in the United States. With over 8,000 locations, it is the second largest retailer of its type in the United States. With the help of their vendor community they are able to keep their costs low, enabling them to pass those savings down to their customer. Family Dollar is committed to the communities they serve by offering quality merchandise at low prices.

DBA

Little Caesars

Locations

4,000+

Public/Private

Private

Line of Business

Little Caesars Pizza is the third-largest pizza chain in the United States and has been operating for nearly 60 years. Since 2004, the chain started offering “Hot-N-Ready”, a large pepperoni pizza sold for $5. The concept was successful enough to become a permanent fixture of the chain, and Little Caesars’ business model has shifted to focus more on carryout. Globally, Little Caesars has restaurants on five continents

DBA

Subway

Locations

41,000+

Public/Private

Private

Line of Business

Subway IP Inc. is a privately held American fast food restaurant franchise that primarily sells submarine sandwiches (subs) and salads. It is owned and operated

by Doctor’s Associates Inc., doing business as Subway IP Inc. Subway is one of the fastest growing franchises in the world, with 41,000 restaurants in 112 countries and territories. It is the largest single-brand restaurant chain and the largest restaurant operator in the world.

PROPERTY DESCRIPTION

5

I N VE S TMENT HI GHLI GHT S

• Priced Below Replacement Cost at $109/SF

HI DDEN VALLE Y SH O P P ING C E NT E R - E L PASO, T X

SNAPSHOT

• 92% Occupied Providing Investors With A Value Add Opportunity to Lease Up Smaller Shop Space • Close to 60% of Center Has Tenant Occupancy for over 20 years

14,875

$51,685

Estimated Vehicle Per Day

Average Household Income

• Located 20 Minutes from the Bridge of the Americas, El Paso’s Highest Volume Border Crossing (More Than 26.3 Billion Border Crossings in 2019)

27.0%

202,307

• Immaculately maintained by the same, prominent, real estate group in El Paso for over 30+ years

El Paso MSA Population Growth 2010-2020

Population: 5 Mile Radius

• Family Thrift Expanded into adjacent 5,000 SF and Extended Their Lease – Further Showing Commitment To This Location • S taggered Rent Roll & Average Rents Of $9.15 Allow for a Long Term Rent Growth

• Dense Location Demographics – More than 200,000 Residents within Five-Mile Radius

PROPERTY DESCRIPTION

6

PRO PERT Y IMAGES

HI DDEN VALLE Y SH O P P ING C E NT E R - E L PASO, T X

MARKET OVERVIEW

7

S I T E PL A N

HI DDEN VALLE Y SH O P P ING C E NT E R - E L PASO, T X

PROPERTY DESCRIPTION

8

PRO PERT Y IMAGES

HI DDEN VALLE Y SH O P P ING C E NT E R - E L PASO, T X

DOWNTOWN EL PASO

AL

AM

ED A

AV E

14 ,8

75

VP

D

ASCARATE ELEMENTARY SCHOOL

MARKET OVERVIEW

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LO C AL MA P

HI DDEN VALLE Y SH O P P ING C E NT E R - E L PASO, T X

MARKET OVERVIEW

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REG IONA L MA P

HI DDEN VALLE Y SH O P P ING C E NT E R - E L PASO, T X

MARKET OVERVIEW

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M A R KET S U MMARY

HI DDEN VALLE Y SH O P P ING C E NT E R - E L PASO, T X

El Paso, TX

OVERVIEW El Paso, which is Spanish for “the pass”, is a city in and the county seat of El Paso County, Texas, in the far western part of the state. The 2018 population estimate for the city from the U.S. Census was 682,669. El Paso stands on the Rio Grande across the Mexico–United States border from Ciudad Juárez, with Las Cruces, NM, to the north.

The city has a strong federal and military presence.

William Beaumont Army Medical Center, Biggs Army Airfield, and Fort Bliss call the city home.

Fort Bliss is one of the largest military complexes of the United States Army and the largest training area in the United States. However, El Paso has a diversified economy focused primarily within international trade, military, government civil service, oil and gas, health care, tourism and service sectors.

The El Paso metro area had a GDP of $29 billion in 2011. There were also $92 billion worth of trade in 2012. Over the past 15 years the city has become a significant location for American-based call centers. Cotton, fruit, vegetables, and livestock are also produced in the area. El Paso has added

a significant manufacturing sector with items and goods produced that include petroleum, metals, medical devices, plastics, machinery, defenserelated goods and automotive parts. The city is the second busiest international crossing point in the U.S. behind San Diego.

The University of Texas at El Paso (UTEP) also calls the city home. Founded in 1914, UTEP is part of the University of Texas System and has an enrollment over 25,000 students. UTEP is the second-largest university in the U.S. to have a majority Mexican American student population.

El Paso is home to one Fortune 500 company in Andeavor (formerly Western Refining), which is listed on the New York Stock Exchange. More than 70 Fortune 500 companies have offices in El Paso, including AT&T, ADP, Boeing, Charles Schwab, Delphi, Dish Network, Eureka, Hoover, Raytheon, State Farm and USAA. Hispanic Business Magazine included 28 El Paso companies in its recently released list of the 500 largest Hispanic owned businesses in the United States. El Paso’s 28 companies are second only to Miami’s 57.

MARKET OVERVIEW

12

D E M OG RA PHIC STAT I ST I CS

HI DDEN VALLE Y SH O P P ING C E NT E R - E L PASO, T X

1 Mile

3 Mile

5 Mile

Population

1 Mile

3 Mile

5 Mile

Households:

2010 Population

9,229

88,152

202,307

2010 Households

3,001

30,768

68,129

2020 Population

8,851

83,661

197,094

2020 Households

2,870

29,163

65,934

2025 Population Projection

8,725

82,289

194,847

2025 Household Projection

2,828

28,680

65,108

Median Age

35.3

35.7

34.6

Annual Growth 2010-2020

0.60%

0.40%

0.50%

Bachelor's Degree or Higher

11%

14%

16%

Owner Occupied

1,594

15,233

34,977

U.S. Armed Forces

20

1189

8214

Renter Occupied

1,233

13,448

30,131

3.1

2.8

2.9

2

2

2

$66.5M

$670.3M

$1.6B

Avg Household Size

Population by Race

Avg Household Vehicles

White

8,560

78,735

183,254

Black

82

2,245

6,947

American Indian/Alaskan Native

98

874

2,139

Asian

26

654

1,641

Avg Household Income

$44,410

$47,586

$51,685

Hawaiian & Pacific Islander

13

169

397

Median Household Income

$34,567

$36,794

$39,219

Two or More Races

73

984

2,715

< $25,000

1014

9,684

21,562

8,602

75,412

168,811

$25,000 - 50,000

983

9,228

18,562

$50,000 - 75,000

483

5,500

12,681

Hispanic Origin

Housing Median Home Value Median Year Built

Total Consumer Spending

Income

$63,182

$91,312

$110,597

$75,000 - 100,000

222

2,247

5,587

1963

1964

1968

$100,000 - 125,000

36

1,247

3,557

$125,000 - 150,000

58

458

1,609

$150,000 - 200,000

57

510

1,439

$200,000+

19

290

937

Demographic data © CoStar 2021

MARKET OVERVIEW

13

CONFIDENTIALITY AGREEMENT The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from STRIVE and it should not be made available to any other person or entity without the written consent of STRIVE. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to STRIVE. This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. STRIVE has not made any investigation, and makes no warranty or representation with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe to be reliable; however, STRIVE has not verified, and will not verify, any of the information contained herein, nor has STRIVE conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT STRIVE AGENT FOR MORE DETAILS.

Commercial Disclaimer STRIVE hereby advises all prospective purchasers of commercial property as follows: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, STRIVE has not and will not verify any of this information, nor has STRIVE conducted any investigation regarding these matters. STRIVE makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a commercial property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. STRIVE expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a commercial property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any commercial property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenants and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenants history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term leases, including the likelihood of locating replacement tenants if any of the current tenants should default or abandon the property, and the lease terms that Buyer may be able to negotiate with any potential replacement tenants considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release STRIVE and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this commercial property.

Information About Brokerage Services

Texas law requires all real estate license holders to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords.

TYPES OF REAL ESTATE LICENSE HOLDERS: • A BROKER is responsible for all brokerage activities, including acts performed by sales agents sponsored by the broker.

• A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker.

A BROKER’S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents): • Put the interests of the client above all others, including the broker’s own interests; • Inform the client of any material information about the property or transaction received by the broker; • Answer the client’s questions and present any offer to or counter-offer from the client; and • Treat all parties to a real estate transaction honestly and fairly.

A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION: AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner’s agent through an agreement with the owner, usually in a written listing to sell or property management agreement. An owner’s agent must perform the broker’s minimum duties above and must inform the owner of any material information about the property or transaction known by the agent, including information disclosed to the agent or subagent by the buyer or buyer’s agent.

AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant’s agent by agreeing to represent the buyer, usually through a written representation agreement. A buyer’s agent must perform the broker’s minimum duties above and must inform the buyer of any material information about the property or transaction known by the agent, including information disclosed to the agent by th e seller or seller’s agent.

AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parties the broker must first obtain the written agreement of each party to the transaction. The written agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker’s obligations as an intermediary. A broker who acts as an intermediary: • Must treat all parties to the transaction impartially and fairly; • May, with the parties’ written consent, appoint a different license holder associated with the broker to each party (owner and • buyer) to communicate with, provide opinions and advice to, and carry out the instructions of each party to the transaction.

• Must not, unless specifically authorized in writing to do so by the party, disclose: ӽ that the owner will accept a price less than the written asking price; ӽ that the buyer/tenant will pay a price greater than the price submitted in a written offer; and ӽ any confidential information or any other information that a party specifically instructs the broker in writing not to disclose, unless required to do so by law.

AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transaction without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first.

TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH: • The broker’s duties and responsibilities to you, and your obligations under the representation agreement.

• Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated.

LICENSE HOLDER CONTACT INFORMATION: This notice is being provided for information purposes. It does not create an obligation for you to use the broker’s services. Please acknowledge receipt of this notice below and retain a copy for your records.

Regulated by the Texas Real Estate Commission

Information available at www.trec.texas.gov IABS 1-0

exclusively listed 469.844.8880

STRIVERE.COM